 FM Radio Broadcasting, a sub‐set of Media and Entertainment is slated to grow at y1% y‐o‐y
 The radio sector consists of ‐ private FM radio stations over and above the public service
broadcaster All India Radio
 Government’s recent approval of introducing Phase III auctions has opened avenues for more
private channels to operate in this space

FM Radio Broadcasting – Indian Market Overview (1/2)
FM Radio – Market Size & Growth
• The radio sector consists of ‐ private FM radio
stations over and above the public service
broadcaster All India Radio
• AIR boasts of having the highest network of ‐
broadcasting centers with ‐ medium frequency
(MW), ‐ high frequency (SW) and ‐ FM transmitters
• Embargo on broadcasting news and current affairs
has also been lifted
• Limit for Foreign Direct Investment has also been
raised from the earlier a1% to that of a2%

INR bn
g
a

b

c

2011

2012

2013e

f

e

d

0

FM Radio – Geographical Coverage

2014e

2015e

2016e

Private FM Stations – Growth

No

l
h

i

j

k

2009

2010

2011

p1
0
2008
FM RADIO BROADCASTING MARKET IN INDIA 2013.PPT

4

Grant of FM radio channels has certain financial parameters
that need to be adhered to

SAMPLE

Minimum Net Worth required as per city category in each region

m1

m7

m2

m8

m3

m9

m4

m10

m5

m11

m6

m12

FM RADIO BROADCASTING MARKET IN INDIA 2013.PPT

5

… riding high on the adoption of mobile phones across the
rural communities

SAMPLE

FM radio penetration in rural areas has been conditioned by prominent adoption of mobile phones
• The penetration of mobile phones in rural market has ushered in a new lease of
life to FM stations of All India Radio
• Listeners’ base has been steadily increasing in the last 4‐5 years ever since
mobile phone started having radio as an option
• Apart from adding to the numbers, phones also created provisions for a two‐way
communication between listeners and organizers during times of live phone‐in
programmes
Rural Wireless Subscribers in India (2012)
mn

x
y

z

Sep 2012

Oct 2012

0

A significant move in this respect will be the emergence of community radio that is designed to be for and by the
community present across the rural boundaries in the country

FM RADIO BROADCASTING MARKET IN INDIA 2013.PPT

6

Drivers & Challenges – Summary

Drivers
Increase in FM penetration
Increase of advertising

Challenges

Increase in usage of mobile phones

Lack of content differentiation

Demographical alterations

Presence of few channels

Political advertising
Introduction of new performance
measurement tool

FM RADIO BROADCASTING MARKET IN INDIA 2013.PPT

7

Radio is considered to be a cheap medium of advertising as
compared to print and electronic media
Increase of advertising

Impact

• Radio advertising is considered as a cheap mode of advertising having several advantages
• Advertising in radio is less expensive as compared to that of advertisements in newspapers or
even television commercials
• Radio carries a distinct benefit as compared with electric or branded advertisements since
listeners attach a lot of importance owing to the incidence of repetition
• Radio being the best local media available to connect with people even in far‐flung areas has
made it a preferred medium for political parties
• Gradual emergence of radio as an effective advertising medium has led to the growth of the FM
broadcasting on the whole

E
L
P
M
A
S

Radio Advertising in India – Growth
INR bn
x1
m

n

o

p

q

Radio Advertising Volume – Growth

r
%

t

s

0

0
2011

2012e

2013e

2014e

2015e

2016e

Metros

FM RADIO BROADCASTING MARKET IN INDIA 2013.PPT

Non‐Metros
8

Government Participation – Summary

Ministry of Information and
Broadcasting

Initiatives

Telecom Regulatory
Authority of India

FM channels are warned
against airing vulgar content

FM RADIO BROADCASTING MARKET IN INDIA 2013.PPT

9

Ministry of Information and Broadcasting forms the apex
body that governs this sector

SAMPLE

Ministry of Information and Broadcasting
• The Ministry of Information and Broadcasting plays a significant role in disseminating free flow of information
through mass communication media comprising radio, television, films, press, publications, advertising and
traditional mode of dance and drama
• It forms the apex body for formulation and administration of rules and regulations and laws related to
information, broadcasting, press and films
• Is also responsible for international co‐operation in the field of mass media, films and broadcasting as also
interacts with its foreign counterparts on behalf of the Indian Government

FM radio in DTH services
FM RADIO BROADCASTING MARKET IN INDIA 2013.PPT

11

A latest concept that is slowly getting popularized is the
emergence of internet radio

SAMPLE

Rise of internet radio
• The internet radio has emerged as one of the fastest growing medium in the country as almost every medium
hankers to get into the digital bandwagon
• The rise of internet and mobile has compelled FM radio to look beyond their existing ambit and spread wings
online
• Internet radio comes as a huge relief from lack of content differentiation as it promises variety in music and
non‐music content

• p3

• p1

• p2

• p4

• However, a big reason of concern for internet radio is the access to bandwidth
• Since broadband connection is always is needed for internet radios and while it can work on computers, it cannot work too well
on mobile devices
FM RADIO BROADCASTING MARKET IN INDIA 2013.PPT

• The company incurred a net profit of INR x1 mn in FY 2012 and INR
x2 mn in FY 2011
• The company reported total income of INR x3 mn in FY 2012,
registering a decrease of x4% over FY 2011
• The company earned an operating margin of x5% in FY 2012 an
increase of x6 percentage points over FY 2011
• The company reported debt to equity ratio of x7 in FY 2012, a
decrease of x8% over FY 2011

• Operates under y1 and was founded when y2FM frequencies in y3 cities of India were
auctioned by the Government
• Has presence in y4cities across India including y5, y6, y7, y8
• Has posted a net profit of INR y9 mn for the quarter ended Sept2012 as compared to the
net profit of INR y10 mn earned in the corresponding period a year ago

News
• Besides operating as a terrestrial radio station, it has ventured into internet radio through
a partnership with y11, the online music portal of y12
• Have also earned a name in being the leaders in awareness and recall in Dubai, Abu
Dhabi, Sharjah and Al Ain as per their internal research
• Has hosted a premiere night of y13 and y14 which is one of India’s biggest hunts for
aspiring DJs
 The contest aims at bringing the best out of DJs as they are required to mix beats in a thematic
contest

News
• Is an undertaking of the g1 and started off initially as a talk‐based FM Radio Channel in
India

Overview

• Formerly it was known as g2 which broadcast in major cities namely g3, g4
• Sept ‐ witnessed the change of its name to g5 as also to a different format

Services

• Boasts of being ahead than Big FM in terms of the latest RAM ratings in Delhi

Recent Update

• Has tied up with g6 that provides shelter to unprivileged girls and has managed to
organize events wherein Bollywood actors have participated
• Has also launched a Bollywood based content segment designed especially for fans who
are foodies named g7
• Has recently started its hunt to find the new voice of Mumbai wherein it is providing a
platform for fresh radio talent to demonstrate their wit, communication skills and
entertain the city through the g8 in Mumbai
 The winner of this RJ Hunt will be provided with an opportunity to become a professional RJ with g9

FM RADIO BROADCASTING MARKET IN INDIA 2013.PPT

19

SAMPLE

Regional Players (2/4)
Company 3

Key People

Corporate Information

Name

Registered Address
Tel No.

Designation

‐

-

‐

‐

‐

‐

‐

‐

Website
Year of
Incorporation

Business Highlights
• Is a commercial FM wing of the media conglomerate of z1
• Is available in the frequency of z2 and has presence in z3 states of z4, z5, z6, z7
• Follows the format of CHR (Contemporary Hit Radio) format wherein it focuses on belting out the latest and best
commercial hits
 The playlists include Bollywood, Bhangra and hit local music

• Has also launched a reality show z8 across its nine stations wherein it looks at finding potential singers of tomorrow

FM RADIO BROADCASTING MARKET IN INDIA 2013.PPT

20

SAMPLE

Other Players (1/4)
Company

Company 4

Company 5

Company 6

Company 7

FM Frequency

p1

p2

p3

p4

No. of Stations

Business Description

p5

• It broadcasts in ‐
• It also offers –
• It is promoted by ‐publications in ‐

p6

• It is based in ‐
• Its on‐air presentation language of the station is in ‐ and is
the only private station to do so
• All the radio content are based on extensive research from
local research studies and its ‐ pre launch campaign

p7

• ‐ started its service on ‐
• It is a private FM radio station for the state of ‐, operated by
the ‐
• Services in ‐, ‐

p8

• It is an educational FM radio station in several cities of India
• Operate as ‐ with day‐to‐day programmes contributed by
educational institutions, NGOs, government and semi‐
government organizations, UN agencies, Ministries
• Medium of broadcast is English, Hindi or regional language
• Broadcasts through radio network of ‐

FM RADIO BROADCASTING MARKET IN INDIA 2013.PPT

21

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FM RADIO BROADCASTING MARKET IN INDIA 2013.PPT